Australian Vanadium Limited (ASX: AVL) has nailed down a key plank in its progress in development planning for its Australian Vanadium Project in Western Australia.
The company has signed a Joint Co-operation Agreement with Mid West Ports Authority (MWPA) for the future use of facilities and services at the key mid-west resources sector port facility at Geraldton, as it moves towards approval, funding and development of the Project.
“Having confidence that Mid West Ports Authority will be able to directly accommodate our requirements is another big step in our pathway to production,” Managing Director, Vincent Algar, said.
“Improving confidence levels in our costings and providing necessary assurances for future access and communication is a major benefit as we finalise our BFS and move towards approvals and funding.”
Mr Algar said AVL’s selection of Geraldton as the preferred port for export of its FeTi coproduct was the catalyst for the agreement.
The company intends to export volumes of around 900,000 tpa of the FeTi coproduct for approximately 25 years.
The Port does not currently have the necessary storage or ship loading infrastructure and capability required to support the handling, loading and export of the product. AVL is also proposing to use the Port of Geraldton for import of key reagents and equipment. The two parties have agreed to co-operate and work together to investigate AVL’s requirements and the Port’s future capability to accommodate them.
The Project is one of the most advanced vanadium projects being developed globally. It is based on a high-grade V-Ti-Fe Mineral Resource located in the Murchison Province approximately 43kms south of the mining town of Meekatharra in Western Australia and 740km north-east of Perth.
The Project will produce a vanadium concentrate at the resource site and complete production of a high purity vanadium and an iron titanium (FeTi) coproduct at a processing plant located near the port city of Geraldton.
The generation of a FeTi coproduct for sale, in addition to the production of a high purity vanadium pentoxide product for steel and battery industries, is a key differentiator for AVL.
The company’s chosen strategic location for its vanadium processing facility, near Geraldton, enables the sale of the FeTi coproduct which enhances the Project’s economic resilience through the addition of a secondary revenue stream. This opportunity is globally unique to AVL due to the strategic location of the processing plant.
The Project will ship approximately 900,000 dry tonnes per annum (tpa) of FeTi coproduct through the Port of Geraldton for the 25 year life of the Project. Signing a Joint Co-operation Agreement allows AVL and MWPA to work co-operatively to define the best alternatives for the storage and shipping needs of the Project. MWPA is actively planning for future growth of the port facilities and AVL will become a key long-term partner in the Port’s proposed expanded capabilities.
AVL is in discussions to secure multiple offtake agreements for this FeTi coproduct, primarily used in blast furnace applications. In November 2021, AVL signed its first letter of intent for sale of the product to Shenglong Metallurgy International in Hong Kong, the commercial arm of Guangxi Shenglong Metallurgy Co Ltd.
The Port of Geraldton will also be used as a receiving port for AVL’s processing reagents and large break-bulk equipment needed for the processing plant and crushing, milling and beneficiation plant at Meekatharra. It will also enable the company to import renewable energy hardware for both Project sites.
The agreement does not oblige MWPA or AVL to enter into any agreements or undertakings, but provides an intention to co-operate and work together to the benefit of both parties. The term of the agreement is 12 months, with extensions subject to the agreement of MWPA and the Minister if required.
Following the Joint Co-operation, a negotiation for Port access, capacity reservations, loading and handling service and product export contracts may be undertaken, with AVL paying costs and expenses if required by MWPA.
